Chola MS Records GWP of Rs 4,136 Cr with 11.6% growth in H1 FY25; Reports 60% Increase in PBT to Rs. 350 Cr in First Half of FY25

National, 27^th October 2024: Cholamandalam MS General Insurance Company Ltd (Chola MS), a joint venture between the Murugappa Group and Mitsui Sumitomo Insurance Group (Japan), today announced the financial performance for the second quarter (Q2FY25) and half year (H1FY25) ended September 30th, 2024. The company reported a Gross Written Premium (GWP) of Rs. 4,136 crores, reflecting a 11.6% increase compared to the same period last year. In Q2 FY25, GWP stood at Rs. 2,191 crores, marking a 9.2% growth over the corresponding quarter.

In Q2 FY25, Chola MS recorded a Profit Before Tax (PBT) of Rs. 171 crores and in the first half of the fiscal year, the company recorded a PBT of Rs. 350 crores, marking a 60% increase from Rs. 219 crores in H1 FY24. This performance includes Rs. 22.7 crores in non-recurring income from interest on an income tax refund.

Key Highlights:

·         Chola MS has expanded its overall market share to 3.12% (among multi-line insurers), achieving a 5.4% market share in the motor line of business.

·         Chola MS has added several new partnerships, including Honda, L&T Finance, Bajaj Finance, Aeon Credit, MMFSL, and Dvara KGFS.

·         The solvency margin of Chola MS improved to 2.06 times, exceeding the regulatory requirement of 1.5 times.

·         The Return on Equity (RoE) for H1 FY25 was 9.48% (not annualized).

·         As of September 30, 2024, the company’s net worth stands at Rs. 2,753 crores, with 84% derived from accumulated profits.

·         The company's investment portfolio has grown to over INR 17,100 crores.

·         Chola MS successfully settled over 3 lakh claims across various lines of business (other than crop claims), including those related to natural catastrophe events such as floods in Baroda/Surat, Andhra Pradesh, Telangana, and the Wayanad landslides.

·         The company’s extensive network of over 15,000 garages and 12,000 hospitals has played a crucial role in enabling both cashless and reimbursement claims for affected customers.

·         Chola MS has enhanced customer experiences by migrating its private car portfolio from a legacy ERP system to a cloud-based architecture environment (TCS Bancs).

·         The SAHAI application, powered by artificial intelligence, has been instrumental in improving motor damage assessment, resulting in higher adoption rates and increased accuracy, which has further streamlined the claims process.

Sharing his thoughts on the company’s half yearly performance, Mr. V. Suryanarayanan, Managing Director of Chola MS, stated, “Our sustained focus on growth with profitability continues to drive our growth and performance. We remain committed to furthering our digital technology transformation to serve our customers better. We express our sincere gratitude to our customers, employees, business partners, and investors for their enduring trust and support.